Most employees don’t spend a lot of time thinking about compliance issues, unless their job focuses on compliance or a related area. But it isn’t just the compliance, legal, and HR teams that need to be aware of and compliant with legal and compliance requirements applicable to the company.
Every department, every team, and every individual in a company plays a role in following labor laws and creating a fair, safe workplace.
But, when businesses get it wrong, the consequences aren’t just legal—they’re also human. Employees get hurt. People lose their jobs unfairly. Workers miss out on wages they rightfully earned.
While it’s easy to assume that compliance failures only happen in small, careless companies, even massive, sophisticated corporations regularly make costly mistakes.
Amazon: Rushing Workers at the Cost of Safety
In Amazon’s warehouses, workers were pushed to meet extreme quotas, allegedly at the expense of their health and safety. In 2023, OSHA fined Amazon over $120,000 after finding that the company ignored ergonomic hazards, leading to serious injuries. Employees who spoke up about these issues said they faced retaliation.
Takeaway: Workplace safety isn’t just OSHA’s job. Supervisors, logistics managers, and corporate leadership must ensure safe working conditions.
Starbucks: Union-Busting That Crossed the Line
When baristas at Starbucks started unionizing, some saw their hours cut, their stores closed, or—worse—they got fired. The National Labor Relations Board (NLRB) ruled that Starbucks illegally retaliated against pro-union workers and ordered the company to reinstate them and pay back wages.
Takeaway: Union rights aren’t just a legal checkbox. Store managers, district leaders, and corporate decision-makers must respect workers’ rights—or face legal consequences.
Tesla: Turning a Blind Eye to Racial Discrimination
At Tesla’s Fremont factory, a Black employee was subjected to racial slurs and racist graffiti. The company was accused of ignoring the problem—and it cost them $3.2 million in court.
Takeaway: A toxic workplace doesn’t fix itself. It takes managers, team leads, and even coworkers standing up and speaking out to stop discrimination.
McDonald’s: Stealing Wages From Workers
Thousands of McDonald’s employees weren’t getting paid for overtime, were denied breaks, and were forced to work off the clock. A class-action lawsuit ended with the company paying out $26 million to settle wage theft claims.
Takeaway: Payroll teams, franchise owners, and shift managers all need to ensure that every employee gets paid fairly—cutting corners isn’t just unethical, it’s illegal.
The Bottom Line: Compliance Isn’t Someone Else’s Job
Big companies with deep legal resources still get it wrong. The best way to avoid mistakes? Make sure compliance is part of everyone’s job, every day.
Lin Grensing-Pophal is a Contributing Editor at HR Daily Advisor.
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